The announcement that UK banks will be hit by a 50 per cent tax on bonus payouts over £25,000 has bankers scrambling to find ways around the tax.
The move is obviously intended to encourage banks to retain capital rather than pay it out as bonuses. But UK banks, worried about losing employees to US and European firms if they don’t meet the market for compensation, will undoubtedly attempt to circumvent the tax.
And it couldn’t be easier. Finbar Taggit showed us how to get around the tax.